Level II Curriculum: What Changed for 2023
Extensive work through practice analysis and curriculum development has resulted in significant revisions at Level II for 2023. These changes, coupled with the updates made for the 2022 cycle, aim to better equip candidates with the knowledge and skills that reflect current investment practice.
Highlights to changes for 2023 include revised Multiple Regression content, now divided into four, easier-to-consume learning modules. The Corporate Restructuring reading includes the expanded use of spreadsheet modeling, and the Real Estate readings have been subdivided into three readings with more streamlined content.
Refer to the key and tables below to learn what else has changed in Level II of the CFA Program curriculum for 2023.
Interested to compare these changes against updates that were made last year? Visit Level II Curriculum: What Changed for 2022.
- Update: Smallest degree of change. Data, examples, and references were brought up to date.
- Revision: Medium degree of change. Content was adjusted and improved for clarity or accuracy.
- Major Revision: Largest degree of change. Content was rewritten or significantly altered to reflect new guidance or advances in the industry.
- Added: New area of content introduced to the curriculum.
- Dropped: Reading no longer appears in the curriculum. Material was no longer relevant or was better captured elsewhere.
- No Changes: Content remains the same as in the 2022 curriculum.
Reading | Change | Summary of Changes |
---|---|---|
Introduction to Linear Regression | Dropped | Content moved to Level I |
Multiple Regression | Major Revision |
Content coverage divided into four learning modules:
Updated content with investment-focused datasets |
Time-Series Analysis | No Changes | |
Machine Learning | No Changes | |
Big Data Projects | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Currency Exchange Rates: Understanding Equilibrium Value | Updated | |
Economic Growth | Revision | |
Economics of Regulation | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Intercorporate Investments | No Changes | |
Employee Compensation: Post-Employment and Share-Based | No Changes | |
Multinational Operations | No Changes | |
Analysis of Financial Institutions | No Changes | |
Evaluating Quality of Financial Reports | No Changes | |
Integration of Financial Statement Analysis Techniques | No Changes | |
Financial Statement Modeling (Previously Industry and Company Analysis) | Revision |
Reading moved from Equity Valuation Topic to Financial Statement Analysis topic Introduction of spreadsheets in LES for financial modeling and additional content on behavioral biases in forecasting |
Reading | Change | Summary of Changes |
---|---|---|
Capital Structure | Dropped | Content streamlined and moved to Level I |
Analysis of Dividends and Share Repurchases | No Changes | |
Environmental, Social, and Governance (ESG) Considerations in Investment Analysis | Update | New EORQs |
Cost of Capital: Advanced Topics | Added | New reading that focuses on extensions and complexities in estimating required rates of return for equities and fixed income as well as issues in constructing weighted average cost of capital (WACC) |
Corporate Restructuring (Previously Mergers and Acquisitions) | Major Revision | Completely rewritten reading Mostly new content with broader focus on a variety of corporate restructuring events, their analysis, and incorporation into financial modeling for forecasting and valuation Supporting spreadsheets introduced into LES |
Capital Budgeting | Dropped | Content deleted or streamlined and moved to Level I |
Reading | Change | Summary of Changes |
---|---|---|
Equity Valuation: Applications and Processes | No Changes | |
Return Concepts | Dropped | |
Industry and Company Analysis | Revision | Now Financial Statement Modeling (moved to Financial Statement Analysis topic) |
Discounted Dividend Valuation | No Changes | |
Free Cash Flow Valuation | No Changes | |
Market-Based Valuation: Price and Enterprise Value Multiples | No Changes | |
Residual Income Valuation | No Changes | |
Private Company Valuation | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
The Term Structure and Interest Rate Dynamics | No Changes | |
The Arbitrage-Free Valuation Framework | No Changes | |
Valuation and Analysis of Bonds with Embedded Options | No Changes | |
Credit Analysis Models | No Changes | |
Credit Default Swaps | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Pricing and Valuation of Forward Commitments | No Changes | |
Valuation of Contingent Claims | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Real Estate Investments | Revision | Public and Private Real Estate readings combined; content streamlined and divided into three learning modules |
Private Equity Investments | No Changes | |
Introduction to Commodities and Commodity Derivatives | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Exchange Traded Funds: Mechanics and Applications | No Changes | |
Using Multifactor Models | No Changes | |
Measuring and Managing Market Risk | No Changes | |
Backtesting & Simulation | No Changes | |
Economics and Investment Markets | No Changes | |
Analysis of Active Portfolio Management | No Changes | |
Trading Costs and Electronic Markets | No Changes |
Reading | Change | Summary of Changes |
---|---|---|
Code of Ethics and Standards of Professional Conduct | No Changes | |
Guidance for Standards I–VII | No Changes | |
Application of the Code and Standards: Level II | Revision | New cases added to ensure complete coverage of Code and Standards |
See all readings and exam topics in the Level II Study Sessions (candidate login required)